Does E*Trade offer fractional-share trading?

Unfortunately, E*Trade does not yet offer fractional-share trading on the buy side for equities and ETFs, although it is possible to sell fractional shares. Because E*Trade offers a free DRIP service for both stocks and ETFs, many customers will have fractional-share positions. To sell a fractional share at E*Trade, you must use a day order.

What is a fractional share brokerage?

If you want to buy stock that costs $200 per share but only want to invest $10, a fractional share brokerage would allow you to buy 0.05 shares or 5% of a single share. Not all brokerages offer fractional shares, but they are increasingly common among large brokerages with online trading.

What is an example of a fractional share?

Real World Example of a Fractional Share. A young investor with limited funds might have their heart set on buying stock in Amazon. Starting with $1,000 to invest, they won't have enough to buy a full share of stock, so they might find a brokerage firm willing to sell a fractional share.

What is fractional trading?

Fractional trading lets you buy the amount of stock you can afford, whether that’s $5, $50, $500 or $5,000. Some of the most popular stocks today are also some of the most expensive. Building a well-diversified portfolio consisting of just a few shares of each could require tens of thousands of dollars in upfront capital.